Morningstar Bestows Four Stars on Gabelli ABC Fund

That’s because Gabelli Funds, the mutual fund adviser of GAMCO Investors, announced today that the newly categorized market-neutral Gabelli ABC Fund has been awarded four stars by Morningstar.

The ABC Fund bets on undervalued stocks, risk arbitrage positions, and short-term U.S. Treasury securities. According to the firm’s press release, the fund has produced “respectable returns” since inception in May 1993, with the exception of 2008, when the fund lost 2.6%. Last year, the fund gained 5.15% versus the S&P 500 gain of 16.0%, according to Morningstar.

The $613 million fund is managed by Gabelli and sports a net expense ratio of 62 basis points.

Mario Gabelli, portfolio manager of the ABC fund, told Money Management Executive that the 20-yearold fund has always competed against other event driven funds so "We prefer it being in this category."